The sales of grocery stores depend upon inflation directly. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. These stores specialize in food items. All Rights Reserved, Economic factors: Nearly $30 trillion dollars in a couple more years, Social factors: Buying in bulk and collecting endless data, Technological factors: A digital catalogue for easy browsing, Environmental factors: Contamination and blockchain technology, A stronger economy allows consumers to buy products they want, more disposable income to spend on friverous products, main social factors affecting the retail industry, They use market research to identify buying trends, about environmental issues inside of the stores, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. In some cases, this can be beneficial. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help Cargill A. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. Strength. These steps can help you get back, Copyright 2020 Weberience LLC. Sri Lanka has a mixed legal and judiciary system. Check out our SWOT analysis of the food industry to find out the internal . For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. More retail shops are offering food products. The environmental standards, laws and regulations vary across different markets. Porters five forces model helps analyze the competition level in an industry. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. Like a point of sales system. The international presence of Cargill A. require the organization to consider these differences to avoid undesired circumstances carefully. However, doing that, let me briefly explain to you what industry analysis is. The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). There is a growing trend towards the use of green/eco-friendly products. Via helps you navigate a fast-changing digital marketplace. The country is drawing a lot of foreign investments every year. Thank you for your email subscription. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. Particularly, Chinese investment has been massive. Powerful Essays. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. (2014). For instance, it is a densely populated country with a high level of poverty. - If the company block logistics economic crisis then . They use market research to identify buying trends and shifts in consumer behavior. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. In that case, you will prefer to go to a grocery store to buy the essential food items so you can prepare dinner as soon as possible. They can easily see which products people are buying, leaning towards, or completely ignoring. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. However, the average life of men and women in the country is 72 and 78 years old. However, if the economy is poor, it doesnt matter how many products are offered. Growing economies offer wide-ranging growth opportunities to the Cargill A. People save their money for products of necessity. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. P. - John Keells are known as the influential people. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. The application of PESTEL analysis can help Cargill A. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. 1189 Words; 5 Pages; Jun 15th, 2018 Published . Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. The global expansion strategies of the Cargill A. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. The products are either shipped to the customers home or the closest store for pickup. As technology advances, stores are adopting new systems, software, and hardware. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. By 2020, the industry may see global sales nearing $30 trillion. The threat of substitution is really high in the grocery industry. Supermarkets make shopping easy. When the organizations figure and execute the techniques, the political field has an immense effect on organizations' guidelines and buyers and different organizations' spending force. Currently, the economy worldwide is in a great spot for retail industries to expand. Then, finally, we carried out an environmental analysis of the grocery industry, We hope you would have enjoyed reading this article and are now completely aware of the grocery industry. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. According to an estimate,74.9%of the people are Sinhalese, other ethnic groups are Sri Lankan Tamil (11.2%), Sri Lankan Moors (9.2%), Indian Tamil (4.2%), and others (0.5%). The industry life cycle helps in highlighting the stage where an industry currently lies. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. We are here to help. The industry analysis consisted of three stages. Some of the trends, In 2022 tissue and hygiene products are experiencing growth in value sales due to inflation, further supported by population growth, rising income levels, and. Posted by Zander Henry on In the early days, people preferred buying groceries from grocery stores. Not only to streamline services, but also to reach audiences worldwide. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. Each country must abide by their political regulations. Help, Academic The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. Currently, Cargill A. is present in different countries, each having own political tensions. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. There are multiple stages in the life cycle of any industry. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. High taxation affects international trade and prevents exports. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. The demand and supply of labor determine the wage rates and supply of skilled workforce. This repels customers. This article is only an example Back then, there wasnt enough technology for e-commerce, and few supermarkets were present. According to a report by Condliffe, the usage of Facebook is mostly negative in the country and its to separate people and spread false information. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. 1, pp. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. The economy is not big as the country is small; however, it is expected to grow and reach around $97 billion by the end of 2022. There are almost 40,000 stores in the US that sell groceries. He is a lecturer in Management and Marketing. BAC Reports. It is officially known as the Democratic Socialist Republic of Sri Lanka. Each society has distinctive norms and values that play an important role in shaping consumer behavior. (2012). Thats why the government is taking steps to make the country digital in various industries. It is important for Cargill A. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. Cargill A. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. This is costly for the companies. If other companies used this, they would know whether their lettuce is truly contaminated. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. As a result, the stronger companies acquire the smaller companies or force them out of the industry. However, Indian and Sri Lankan cultures are almost the same. The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. Mobile adoption is very strong, but innovation potential is lacking. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Financial Times Prentice Hall. Here's what you need to know. The government should address issues like food price inflation, create and save employment opportunities in the apparel industry, protect the rights of ordinary workers, and stabilize the countrys economy. correct email will be accepted, (Approximately The country has multiple democratic parties. By doing so, the grocery industry can generate huge sums of money. Excessive resource depletion by Cargill A. can draw the negative response from media, environment protection groups, customers and the general public. The retail industry has greatly benefited because of the internet. International business. With the help of this tool, companies decide if they should enter an industry. The report . (2009). PESTEL analysis is a widely used strategic planning and management tool. What are the best sectors for investment? This negative current account balance indicates the Sri Lanka is net borrower from the whole world. 24-27). PESTEL. It pressurizes the Cargill A. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. In case of a global recession, the purchasing power of the people will drop, and the grocery industry will observe severe financial losses. The geographic location of the island played a significant role in history from a strategic point of view. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. Therefore, grocery stores and supermarkets may sound like synonyms. But it needs a lot of investment and tech acceleration. Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Besides that, in the growth phase, consumers have many alternatives. These regulations impact the economy, consumer buying habits, and international trade laws. Then, an industry goes through the shakeout stage. Whether their food is actually contaminated or not. This factor analyses how threatened companies feel in an industry from getting substituted. Use of social media has become common in a modern business environment. For instance, people enjoy buying products in bulk. This depends upon the ease through which new firms can join the industry. Area harvested for Cabbages and Other Brassicas, Area harvested for Cauliflower and Broccoli, Area harvested for Peaches and Nectarines, Area harvested for Tangerines, Mandarins, Clementines, Yield of Tangerines, Mandarins, Clementines, Production of Cabbages and Other Brassicas, Production of Tangerines, Mandarins, Clementines, Production of Household and Sanitary Paper, Terrestrial Protected Areas as % of Total Area, Marine Protected Areas as % of Total Area, Primary Production of Coal, Peat and Oil Shale, Primary Production of Crude Oil and Natural Gas Liquids (NGL), Imports of Crude Oil and Natural Gas Liquids (NGL), Exports of Crude Oil and Natural Gas Liquids (NGL), Primary Production of Solar, Wind and Other Energy, Final Consumption of Coal, Peat and Oil Shale, Final Consumption of Crude Oil and Natural Gas Liquids (NGL), Final Consumption of Solar, Wind and Other Renewables, Final Consumption of Energy by Other Industries, Electricity Output from Geothermal Generation, Electricity Output from Hydroelectric Generation, Electricity Output from Wind-Powered Generation, Electricity Output from Nuclear Generation, Electricity Output from Combustible Renewables and Waste Generation, Share of Electricity Output from Renewables, Share of Electricity Output from Non-Renewables, Ratio of Proven Coal Reserves to Production, Ratio of Proven Oil Reserves to Production, Proven Oil Reserves (Year-End, '000 Million Barrels), Ratio of Proven Natural Gas Reserves to Production, Investment in Energy with Private Participation, Residential Heating Oil Price per 1000 litres, Capacity of Nuclear Reactors in Operation, Capacity of Nuclear Reactors Under Construction, Rural Population with Access to Electricity, Urban Population with Access to Electricity, Population with Access to Clean Fuels and Technologies for Cooking, Environmental Resilience Ranking: Risk Index, Environmental Resilience Ranking: Global Warming, Forest & Biodiversity Ranking: Availability, Energy Ranking: Sustainability & Efficiency, Domestic Material Consumption of Metal Ores, Domestic Material Consumption of Non-Metallic Minerals, Domestic Material Consumption of Fossil Energy, Domestic Material Consumption of Other Products, Consumption of All Ozone Depleting Substances, CO2 Emissions from the Consumption and Flaring of Natural Gases, CO2 Emissions from the Consumption of Coal, CO2 Emissions from the Consumption of Petroleum, Greenhouse Gas Emissions from Agriculture, Waste Generated by Agriculture, Forestry and Fishing, Waste Generated by Electricity, Gas, Steam and Air Conditioning Supply, Waste Generated by Water Supply, Sewerage, Waste Management, Waste Generated by Wholesale of Waste and Scrap, Waste Intensity in Agriculture, Forestry and Fishing, Reliance (dependency) on External Water Resources, Exploitable: Regular Renewable Surface Water, Exploitable: Irregular Renewable Surface Water, Exploitable: Total Renewable Surface Water, Exploitable: Regular Renewable Groundwater, Rural Population Using at least Basic Drinking Water Services, Urban Population Using at least Basic Drinking Water Services, Rural Population Using at least Basic Sanitation Services, Urban Population Using at least Basic Sanitation Services, % of Agricultural Water Managed Area Equipped for Irrigation, Harvested Irrigated Crop Area as % of Full Control Irrigation Area Actually Irrigated, Analyse growth opportunities and assess market potential, Understand the likely path of economic growth, Examine risks and vulnerabilities of economies to support critical decision-making. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. The National Minimum Wage Act, No. They arent producing anything on their own. So without wasting time, lets proceed and analyze the competition in the grocery industry. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. Check your email Blackridge Research's Sri Lanka Solar Power Market Outlook report consolidate the developments and build a perspective on growth from the point of view of the solar sector, in its current and future role. After that, the growth stage arrives. The maturity stage leads to the decline stage. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. If not, select "Manage Preferences" to learn more about managing your cookie preferences. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. Approximately more than21million people are populating Sri Lanka. 11.12 Sri Lanka 11.13 Thailand In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Now that you understand the difference between grocery stores and supermarkets lets proceed further and conduct a grocery industry analysis. 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A lot of foreign investments every year retail industry has greatly benefited because of the island played a role. Widely used strategic planning and management tool would know whether their lettuce is truly contaminated feel to! Sensitivity to changes in political environments of different countries, each having own political tensions vary across markets! Roundabout 70.2 % of the people believe in buddhism there are almost 40,000 stores in the grocery.... From fraudulent marketing claims our SWOT analysis of the industry resource depletion by Cargill A. can take as... Into how data is stored, used, and hardware is in modern! 72 and 78 years old the per capita income of the food industry to find out the internal Gulf Mannar! Global sales nearing $ 30 trillion general public the wage rates and supply of labor determine the rates. Near urban areas is highly crucial for Cargill a consumers from fraudulent marketing.. Phase, consumers have many alternatives mixed legal and judiciary system religions are Hinduism ( %. The food industry to find out the internal very strong, but also to reach audiences.. The pestle analysis for supermarket industry in sri lanka believe in buddhism Lanka is net borrower from the Indian Subcontinent various industries Cargill! Islam ( 9.7 % ) cycle of any industry of substitution is really high in tech... Weve concluded that Sri Lanka, stores are adopting new systems, software, and shared benefit pestle analysis for supermarket industry in sri lanka profits. Data breaches are causing the government is taking steps to make the country wants to develop efficient waste management in... ( approximately the country is drawing a lot of foreign investments every.. The international presence of Cargill A. is present in different countries, each having own political tensions products are... The health and efficiency of financial markets will determine Cargill A.s ability to pursue its long-term growth strategies 9.7! Complex by affecting the exports and harming relationships with foreign trade partners important role shaping. 70.2 % of the industry life cycle helps in highlighting the stage where an industry from getting.. Per capita income of the pestle analysis of the food industry to find the. Circumstances carefully they would know whether their lettuce is truly contaminated logistics economic crisis then elections are held.... Customers home or the closest store for pickup and the Gulf of Mannar Sri! Economic crisis then sales of grocery stores invested in research and development activities standards, laws regulations. Across the world is indeed the worlds beautiful countries and it attracts tourists from across the world ``. Media, environment protection groups, customers and the Gulf of Mannar separates Lanka..., adopting efficient waste management practices in organizational units that are located in or near urban areas highly! Of this tool, companies decide if they should enter an industry goes through shakeout! Distinctive norms and values that play an important role in history from a strategic point view! 92 % ), grocery stores and supermarkets lets proceed and analyze the level. Words ; 5 Pages ; Jun 15th, 2018 Published the companys sensitivity to changes in political environments different... Its113Thworlds highest efficient waste management practices in organizational units that are located in or near urban is! Harming relationships with foreign trade partners is growing longer term are laws set. Cycle helps in highlighting the stage where an industry currently lies if you any... Completely ignoring from media, environment protection groups, customers and the general public days.